How Businesses Operate

This presentation provides an overview of how businesses operate, including the types of companies, organizational structures, PESTLE analysis, impact of customer service, and benefits of customer profiling. It also discusses the importance of the business environment and concludes with references for further reading.

How Businesses
Operate

Table of content
INTRODUCTION
CONCLUSION
REFERNCES

Introduction
Business environment is an environment which means
it is a collection of entities and organisation which is
not under the control of organisation because it is
affected by performance and growth of organisation.

Types of companies
In every sector of industry there are two companies which are private and public companies. As
this two types of companies is also further divided into various types of organisation which are
mentioned below:
Private Sector
Private sector is sector which is run by either individual or by group of people and is not
controlled by government. The main objective of private sector is to earn revenue and increase
sales in market in order to gain competitive advantage. Some of different types of private sector
is mentioned below:
Limited company: This type of organisation is refereed as a company which is managed by single
person as he is only liable for all loss and profit in organisation. Tesco is an individual private
sector organisation.

Public Sector
Departmental Organisation: It is main sector of
public which is controlled by government and no
other type of sector is involved in this type of
organisation. Environmental Agency is an
government departmental undertaking in UK.
Government Companies: This is an entity which
have paid is share capital of at least 51% which is
controlled by central or state and partly be central
or partly state. British business Bank is a
government owned in UK.

Different types of structure in
organisation
There are different types of structure which are mentioned below:
Hierarchical Organisational structure: It is a type of organisational structure where there is
chain of command which means decision is passed from upper level to lower level. This
structure help organisation to clarify roles and responsibility of each staff members. Tesco follow
hierarchical organisation structure where they communicate information from top to bottom.

PESTLE Analysis of Tesco
Political
 The main factor affecting is that they are operating in UK as in the period of
Brexit due to this there is uncertainty.
 Due to change in tax policy impact operation of Tesco because they are
operating globally.
Economic
 The major impact of economic is because of Covid-19 customer are shifting
to other brands.
 Increase in labour cost adversely impact which lead to increase in cost of
goods or services in market.
Social
 As demand of consumer is changing according to new trend in market as
they want fast delivery so Tesco have to understand which help them to
solve issue.
 Demand and requirements of vegetarian food is increase so they have to
focus on fulfilling demand.
Technological
 Tesco have achieved success because they are operating online and using
social and digital media marketing to promote goods or services.
 They also provide self service checkout system which help them to reduce
cost.
Legal
 This affect because of government policies as they cannot merge with
another retailer because of UK competition law.
Environmental
 They are facing issue because of environment issue as in recent Tesco have
taken initiative to reduce and recycle the products which help them to
sustain and fulfil need of both government and public.

Impact of customer service for
business success
Customer service is the main component for effective
function of an organisation in order to sustain in market and
gain competitive advantage. By giving proper service to
customer will positively impact which help organisation to
achieve success.

Benefits of customer profiling to
business
In Customer Profiling they create a portraits that help them to understand need and
requirements of customers and manufacture product accordingly.

Conclusion
From the above discussion, it is concluded that there are different types of private sector where
private sector include limited company, partnership and joint stock company whereas public
sector include government company and public corporation.

REFERENCES
Fernandes, A.A.R., 2017. Moderating effects orientation and innovation strategy on the effect of
uncertainty on the performance of business environment. International Journal of Law and
Management.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.